Chapter 3

Report
Chapter 3
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Idea for a new product
Product description in embryonic form
Newly sensed need
Newly discovered technology
Rough match between a need and a possible
solution
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Familiarity with the solution likely to be
employed.
Familiarity with the need the solution
addresses.
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Horizon 1: Improvements, extensions,
variants, and cost reductions of existing
products for existing markets
Horizon 2: opportunities push out into less
know territory in one or both dimensions of
the market or technology
Horizon 3: attempts to exploit opportunities
that are some way new to the world.
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Generate a large number of opportunities
Seek high quality of the opportunities
generated
Create high variance in the quality of
opportunities
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Step 1 – Establish a charter
Step 2 – Generate and sense many
opportunities
Step 3 – Screen opportunities
Step 4 – Develop promising opportunities
Step 5 – Select exceptional opportunities
Step 6 – Reflect on the results and process
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FroliCat:
◦ Create a physical product in the cat toy market that
we can launch to the market within about a year
through our existing retail sales channel
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Dry erase marker with ink-level indicator
◦ Create a dry erase marker similar to existing
markers that wool have an integrated ink-level
indicator indicating when the marker is empty or
close to empty. We will launch to market within one
year through via a new LLC and internet sales plus
major chains such as Target, Wallmart, Staples,
Amazon, OfficeMax.
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Follow a person passion
Compile bug lists
Pull opportunities from capabilities
Study customers
Consider implications of trends
◦ Clothes sizing
◦ Green
◦ Wireless
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Imitate, but better
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Imitate, but better
◦ Media and marketing activities of other firms
◦ De-commoditize a commodity (competition based
on price)
◦ Drive an innovation “down market” – cheaper
products with same or similar functions, not all the
bells and whistles
◦ Import geographically isolated innovations –
Starbucks, Redbull
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Lead users – people with advanced needs that
are not begin met.
Representation in social networks
Universities and government laboratories
Online idea submission
◦ http://www.ideastorm.com/
◦ http://www.ninesigma.com/
◦ http://www.pg.com/connect_develop/index.shtml
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Pick opportunities with high likelihood of
creating value
Consider – market need, technological
feasibility, alignment with strategy, etc.
Two methods
◦ Web based surveys
◦ Multivoting
◦ Group must have at least 6 members. More than 10
preferred.
◦ Members must have relevant experience
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Invest modest resources into developing a
few opportunities
Search internet for existing solutions
Talk to customers
Quick prototypes
Estimate market size and growth rate
Resolve the greatest uncertainty surrounding
each one at the lowest cost in time and
money.
◦ List major uncertainties and cost to resolve, then
pick the biggest ones with the lowest cost first.
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Real-Win-Worth-it (RWW) method – 3M
◦ Is the opportunity real?
 Market size?
 Is technology available?
 Lkelihood product can be delivered at the right time and
price.
◦ Can you win with the opportunity?
 Establish a sustainable competitive advantage?
 Can you patent or protect it?
 More capable of executing it then your competitors?
◦ Is the opportunity worth it?
 Do you have the rources?
 Will investment pay off sufficiently
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How many opportunities came form internal
sources vs external?
Did we consider dozens or hundreds of
opportunities?
Was the innovation charter too narrowly
focused?
Were our filtering criteria biased?
Are the resulting opportunities exciting to the
team?
2. Would consumers make good raters in an
opportunity screening process?
3. Can you really answer the question of whether
an opportunity is real before developing a
product concept?
4. Could a great opportunity identification process
result in a product that fails in the market?
5. How do the risks differ between two types of
Horizon 2 opportunities, one addressing a
current market need and the other using a
current solution?

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